Cambridge Massachusetts Building Expert Directory

Attorneys' Fees Awarded "Because Of" Property Damage Are Covered by Policy

August 29, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Ninth Circuit upheld the District Court's decision that the insured Association of Apartment Owners was entitled to coverage for the attorneys' fees incurred [prior post here].Assoc'n of Apartment Owners of the Moorings, Inc. v. Dongbu Ins. Co., Ltd., 2018 U.S. App. LEXIS 20251 (9th Cir. July 20, 2018). The District Court for the District of Hawaii granted summary judgment to the AOAO, requiring Dongbu to indemnify the AOAO for an award of attorney's fees that an arbitrator ordered the AOAO to pay to the underlying claimants. The claimants prevailed on a claim that their condominium unit incurred water damage due to a common roof leak. Dongbu's policy required it to reimburse those sums that the AOAO was legally obligated to pay as damages because of property damage. The AOAO became legally obligated to pay the claimants' fees once the state court confirmed the arbitration award. Further, the water damage to the home constituted covered property damage under the policy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Judge Sentences Roofing Contractor Owner in Florida PPP Fraud Case

July 25, 2021 — Richard Korman - Engineering News-Record
A federal judge in Fort Myers, Fla., sentenced Casey David Crowther, 35, the owner of a successful Florida roofing contracting company, to 37 months in prison for using fictitious employee lists to obtain a $2.7-million federal pandemic-aid loan and then purchasing a $689,000 boat with the funds. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Engineer Proposes Slashing Scope of Millennium Tower Pile Upgrade

January 03, 2022 — Nadine M. Post - Engineering News-Record
Based on further structural analysis and the success of a pilot program that installed three permanent piles using modified procedures, the structural engineer-of-record for the delayed perimeter pile upgrade of the 645-ft-tall Millennium Tower in San Francisco has proposed a significantly reduced scope for the project that he says would still arrest settlement and allow the slow recovery of some of the condominium building’s tilt. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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California Pipeline Disaster Brings More Scandal for PG&E

September 17, 2014 — Mark Chediak – Bloomberg
A deadly pipeline explosion that shattered a California town four years ago continues to rip through the state agency weighing a record penalty for the disaster. The president of the California Public Utilities Commission asked his chief of staff to resign and recused himself from the case after “inappropriate e-mail exchanges” with PG&E Corp. (PCG) raised questions about bias, according to a statement from the commission yesterday. The CPUC may decide within weeks whether to levy a proposed $1.4 billion penalty -- the biggest safety fine in the state’s history -- against PG&E for the 2010 explosion of a natural gas pipeline that killed eight people in San Bruno. Commission President Michael Peevey, who has been accused by San Bruno officials and consumer advocates of being too close to the utility, said in the statement he would not take part in penalty deliberations to eliminate any appearance of impropriety. The move is a step toward regaining credibility for the CPUC after two years of political infighting has created an ongoing climate of scandal. Read the court decision
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Reprinted courtesy of Mark Chediak, Bloomberg
Mr. Chediak may be contacted at mchediak@bloomberg.net

Nevada Supreme Court Holds That Insureds Can Use Extrinsic Evidence to Prove Duty to Defend

February 28, 2022 — Bethany L. Barrese - Saxe Doernberger & Vita
The recent Nevada Supreme Court ruling in Zurich American Insurance Company v. Ironshore Specialty Insurance Company1 benefits insureds seeking to establish an insurer’s duty to defend. As a matter of first impression, the court clarified that insureds have the burden to prove that an exception to a policy exclusion applies in order to trigger the insured’s duty to defend. However, while the policyholder may use extrinsic evidence to establish the insurer’s duty to defend, the insurer may not use extrinsic evidence to deny that duty. The facts of the underlying claim are set in the 2000s when the insured subcontractors worked to build thousands of homes in Nevada. The subcontractors were insured by Zurich American Insurance Company (“Zurich”) during that period. After the homes were complete, the subcontractors switched from Zurich to Ironshore Specialty Insurance Company (“Ironshore”). Between 2010 and 2013, homeowners brought claims against the subcontractors alleging that the properties were damaged due to construction defects. The subcontractors tendered the claims to Zurich as the insurer at the time of construction. Zurich then sought defense and indemnification from Ironshore. Ironshore denied coverage under a “continuing and progressive” policy exclusion, claiming that the property damage occurred due to faulty work that predated the Ironshore policy. Notably, an exception to the exclusion applied if “sudden and accidental” property damage occurred within the Ironshore policy period. Given that the underlying lawsuits did not include specific allegations describing when or how the property damage occurred, Ironshore and Zurich disagreed on whether the exception to the exclusion was triggered.. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita
Ms. Barrese may be contacted at BBarrese@sdvlaw.com

New California Employment Laws Affect the Construction Industry for 2019

February 18, 2019 — Smith Currie
The California Legislature introduced more than 2637 bills in the second half of the 2017-2018 session that became law effective January 1, 2019, many of which address employment issues facing California employers in the construction industry. Below we have summarized some of the more important laws (the summary titles are live links to the text of the new law), and employers are urged to protect their companies by updating contracts, policies, and/or practices for compliance. The following is for general knowledge, and we recommend you consult with your attorney for specific legal advice. AB 1565 – Contractor Wage Liability: AB 1565 repeals the provision that relieved direct contractors for liability for anything other than unpaid wages and fringe or other benefit payments or contributions, including interest owed. In the past, a direct contractor could withhold “disputed” sums owed to a subcontractor if the subcontractor failed to provide “information” about their and lower-tier subcontractors’ payroll records. Read the court decision
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Reprinted courtesy of Smith Currie
Smith Currie attorneys may be contacted at info@smithcurrie.com

Quick Note: Attorney’s Fees and the Significant Issues Test

November 03, 2016 — David Adelstein – Florida Construction Legal Updates
Attorney’s fees become a component of damages that parties seek to recover whenever there is a contractual or statutory basis for them to recover their fees. Parties want to be able to recover all or substantially most of the attorney’s fees they incurred in pursuing their claim. (In my experience, recovering all of the fees incurred is very challenging.) But, to be entitled to attorney’s fees, a party has to be deemed the prevailing party. There is the sentiment that as long as you recover a positive net judgment (even if it is for $100 when your claim was for $50,000) then you will be able to recover your attorney’s fees which will likely exceed the amount that was ever in dispute. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

Business Risk Exclusions Do Not Preclude Coverage

November 13, 2013 — Tred Eyerly — Insurance Law Hawaii
The court rejected the insurer's arguments that the business risk exclusions barred coverage for a contractor. Gen. Cas. Co. of Wisconsin v. Five Star Bldg. Corp., 2013 U.S. Dist. LEXIS 134122 (D. Mass. Sept. 19, 2013). Five Star was hired by the University of Massachusetts to upgrade the ventilation (HVAC) system on a portion of a building. The large majority of the work involved work in the interior of the building, but a small portion required installation of duct work and supports on top of the roof of the complex. Five Star also penetrated the roof at numerous locations to install supports for duct work and other rooftop structures for the ventilation system. Other subcontractors then secured supports to the concrete roof deck and installed permanent patches where Five Star had penetrated the roofing system. On same days, Five Star could not accomplish the process in a single day after penetrating the roof. It would install temporary patches until the next day. This was the only work on the roof performed by Five Star. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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